Aura Health closes $1.72-million private placement

2019-01-11 08:25 ET - News Release

Mr. Daniel Cohen reports

AURA ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

On Jan. 10, 2019, Aura Health Inc. closed its previously announced non-brokered private placement raising gross proceeds of $1,724,099.85. The offering was upsized from $1.5-million, as announced on Jan. 8, 2019. The net proceeds from the offering shall be used for general working capital and to advance the company's involvement in two Israeli cannabis companies, HolyCanna and CannabiSendak.

Upon closing, the company issued 11,493,999 units of the company. Each unit was sold at a price of 15 cents and comprised one common share in the capital of the company and one-half of one common share purchase warrant, exercisable at 25 cents for a period of 24 months from the closing date.

Finder's compensation

In connection with the offering, the company issued 122,160 non-transferable finder warrants and paid a cash fee to finders in the amount of $18,324. Each finder warrant is exercisable at a price of 25 cents to purchase one common share for a period of 24 months from the closing date.

Related-party participation in the offering

Daniel Cohen, chief executive officer of Aura, subscribed to 400,000 units and Howard Brass, chief operating officer of Aura, subscribed to 100,000 units. Such participation is considered to be a related-party transaction within the meaning of Multilateral Instrument 61-101. However, this related-party transaction is exempt from minority approval, information circular and formal valuation requirements pursuant to sections 5.5(c) and 5.7(b) of MI 61-101, since:

The offering was a distribution of securities for cash.

Neither the company nor, to the knowledge of the company after reasonable inquiry, the related parties, have knowledge of any material information concerning the company or its securities that has not been generally disclosed.

Neither the fair market value of the units distributed pursuant to the offering nor the consideration paid by the related parties exceeded $2.5-million.

All securities issued in connection with the offering will be subject to a hold period of four months plus one day from the closing date. The offering remains subject to the approval of the Canadian Securities Exchange.

About Aura Health Inc.

Aura is building an international network of vertically integrated cannabis assets. The company holds convertible debt that converts to 54-per-cent equity of HolyCanna, a cultivation and nursery licence holder in Israel, and has a letter of intent in place to acquire the majority of CannabiSendak, the builder of a network of high-profile dispensaries in Israel. Aura also owns a 30-per-cent interest in four medical marijuana clinics in the U.S. Sun Belt, with an option to increase its interest in three of the clinics to 51 per cent.